Cheap Homeowners Insurance Coverage in 2026 [Low Rates With These 10 Companies]
Lemonade, American Family, and Farmers provide cheap homeowners insurance coverage with a $140/mo starting rate. Lemonade excels in its AI-powered operations. American Family offers extensive replacement cost. Farmers insurance provides broad endorsements, like eco-friendly policy.
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Table of Contents
Table of Contents
Published Insurance Expert
Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in sustai...
Melanie Musson
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Eric Stauffer
Updated April 2025
2,235 reviewsCompany Facts
$200k
A.M. Best Rating
Complaint Level
Pros & Cons
2,235 reviews
3,072 reviewsCompany Facts
$200k
A.M. Best Rating
Complaint Level
Pros & Cons
3,072 reviewsLemonade, American Family, and Farmers offer cheap homeowners insurance coverage with a monthly starting rate of $140. Lemonade stands out for its advanced use of AI in operations and flat-fee model that minimizes rate hikes over time.
American Family offers extensive replacement costs that charge no extra dollars for rebuilding costs, even if they exceed the policy’s limit. Farmers Insurance has wide endorsements for its eco-friendly policy and several add-ons.
Our Top 10 Company Picks: Cheap Homeowners Insurance Coverage
| Company | Rank | $200k Policy | Green Home Discount | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | $140 | 10% | Digital Platform | Lemonade |
 | #2 | $162 | 5% | Flexible Coverage | American Family |
 | #3 | $165 | 8% | Policy Customization | Farmers |
 | #4 | $160 | 6% | Nationwide Availability | State Farm |
 | #5 | $152 | 7% | Green Homes | Travelers |
 | #6 | $150 | 9% | Personalized Service | Auto-Owners |
 | #7 | $145 | 6% | Discount Variety | Progressive |
 | #8 | $155 | 7% | Cost Savings | Liberty Mutual |
 | #9 | $170 | 5% | Reliable Service | Nationwide |
 | #10 | $175 | 6% | Customization Options | Allstate |
This buying home insurance guide is here to assist you in finding the most affordable and top home insurance companies while ensuring that coverage and policies are not compromised.
- Lemonade operates using AI tools for policy underwriting
- A $140 starting monthly rate and 20% maximum bundling savings
- Basic Policy HO-1 costs $50 for a single-family dwelling
Read on to compare the best home insurance providers and learn how to find cheap home insurance companies near you. Get quick homeowners coverage by entering your ZIP code.
#1 – Lemonade: Top Overall Pick
Pros
- AI-Powered Operations: Lemonade insurance review highlights the use of AI in operations, especially policy underwriting and claim processing, to lessen administrative fees.
- Giveback Program: This program is about giving back unused premiums to charities while reducing the chance of overcharging customers.
- Flat-Fee Model: It minimizes premium markups by charging a fixed percentage of the cost of operation and operates online to avoid traditional insurance expenses.
Cons
- AI-Driven Claims Issue: Once processed through AI automation, complex cases may lead to incorrect denials and delays.
- No Specialized Coverage: While some insurers may offer niche coverage choices like custom-built homes, valuable art, and high-end jewelry, Lemonade skips this offer.
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#2 – American Family: Best for Flexible Coverage
Pros
- Extended Replacement Cost: An extended coverage for rebuilding costs when it exceeds the policy limits to offer extra homeowners’ financial assistance.
- Customizable Policy: The American Family provides broad coverage from standard protection to add-ons like identity theft protection, hidden water damage, and equipment breakdown.
- Diminishing Deductible: For long-term savings, the deductibles are reduced each year when no claims are filed. Check this out in the American Family home insurance review.
Cons
- Geographical Limitations: Policies are only available in 19 states, limiting access to the best home insurance companies across the U.S.
- Higher Rate: Compared to Lemonade’s cheap homeowners insurance coverage, American Family can be more expensive, with a $5 to $15 difference.
#3 – Farmers: Best for Policy Customization
Pros
- Adjustable Deductibles and Policy: Policyholders can customize the coverage limits and deductibles to adapt to different financial situations.
- Guaranteed Rebuilding Cost: According to our Farmers home insurance review, it provides an option for full coverage for rebuilding your home, even when the policy limit exceeds it.
- Broad Endorsements: Eco-build coverage, replacement cost for personal property, and identity theft protections are some of the add-ons available.
Cons
- Fewer Online Platforms: Farmers does not offer online operations in claims, policy management, and even quick quotes for recommended house insurance.
- Mixed Reviews: Some customers experienced and reported slow claims on insurance coverage for homeowners and inconsistent service quality.
#4 – State Farm: Best for Nationwide Availability
Pros
- Nationwide Availability: State Farm home insurance coverage is the largest insurer that operates in every U.S. state, even in high-risk areas.
- Consistent Policy Offerings: It offers standardized coverage and plans nationwide, lowering the risk of policy variations across states. Read our State Farm home insurance review for more info.
- Strong Local Agents: There are 19,000 agents nationwide to ensure customers get personalized service and the expertise of the best home insurance.
Cons
- Claims Procedure Delays: When the volume of claims is high during large-scale disasters, the State Farm home insurance coverage claims experience delays and long wait times.
- Premium Rates Variations: Although cheap homeowners insurance coverage is available, there are differences in rates, especially in high-risk zones.
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#5 – Travelers: Best for Green Homes
Pros
- Green Home Add-On: Travelers home insurance review features green home coverage, which helps homeowners rebuild using eco-friendly materials after damage or loss.
- LEED Certified Home Discount: A 5% discount on homes certified “green” by the Leadership in Energy and Environmental Design.
- Eco-Friendly Rebuilding Policy: Travelers allows policyholders to rebuild after damage with energy-efficient alternatives like energy-star appliances and sustainable materials.
Cons
- Higher Rates for Green Add-On: An increase in eco-friendly plan rates may outweigh the savings discounts offered by the best home insurance companies.
- Fewer Discounts: While green home perks are available for homeowners insurance coverage, the overall savings options are not as competitive as others.
#6 – Auto-Owners: Best for Personalized Service
Pros
- Superb Handling Complex Case: Auto-Owners insurance review says that the company excels at personalizing coverage for risk management, especially for those in high-risk zones.
- Flexible Policy: Cheap homeowners insurance coverage has adjustable deductibles, add-ons, and limits based on their needs.
- Independent Agents Network: Auto owners exclusively sell plans through independent agents, ensuring the proper coverage recommendation.
Cons
- Inconsistent Service Across Agencies: The customer’s house insurance coverage experience varies depending on the independent agents.
- Limited Availability: Home insurance coverage quotes are not available online, and the company does not operate in all 50 states.
#7 – Progressive: Best for Discount Variety
Pros
- Claims-Free Discount: Progressive home insurance review mentioned it grants lower premiums to responsible homeowners after several years of being claims-free.
- Quote-in-Advance & Pay-in-Full Discounts: Homeowners who pay upfront and get quotes before the current plan expires can save on their premiums, though amounts are not specified.
- New Home & New Customer Discounts: Homeowners of switchers or newly constructed homes may be eligible for cheap homeowners insurance coverage with lower premiums.
Cons
- Discount Variations: Progressive partners with major insurers to offer house insurance coverage, giving customers different savings options.
- Restricted Customization: Add-ons and endorsements are not as wide as those of other providers like Travelers and Farmers.
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#8 – Liberty Mutual: Best for Cost Savings
Pros
- Newly Purchased & Renovated Home Savings: Recently bought or renovated homes are eligible for a lesser premium, which may not be available from other home insurance providers.
- Flexible Payment Options: Liberty Mutual home insurance review discusses its varied payment options, either monthly, bi-annual or full upfront, making it cost-manageable.
- Customized Coverage Options: Homeowners can customize the deductibles and coverage limits of the best home insurance, balancing protection and affordability.
Cons
- Premium Hikes Over Time: Some policyholders report inconsistent customer service and claims handling of home insurance.
- Fewer Add-Ons: Fewer add-ons on homeowners insurance coverage than other companies, making it less flexible.
#9 – Nationwide: Best for Reliable Service
Pros
- Strong Financial Stability: An A+ rating from A.M. Best shows its strong financial stability in claims disbursements for cheap homeowners insurance coverage.
- All-Out Customer Support: A 24/7 customer support and claims assistance without any delays, making it one of the top home insurance companies.
- Extra Standard Coverage: The Nationwide insurance review mentioned its standard policies, which include law coverage and dwelling replacement cost for protection without extra charge.
Cons
- Fewer Customization: Nationwide’s insurance coverage for homeowners has fewer add-ons and features, making it less flexible than competitors.
- Higher Premiums in Certain Areas: The best home insurance premium is higher than average, especially in high-risk locations, due to its strong service.
#10 – Allstate: Best for Customization Options
Pros
- Extensive Endorsements: The company provides a list of endorsements, such as scheduled personal property, green improvements, and water backup. Read our Allstate insurance review for more details.
- Roof Surface Coverage: Homeowners can opt for cheap homeowners insurance coverage that includes full replacement of roof damage cost rather than a depreciated value.
- Claim RateGuard: Allstate provides a claim rate that prevents an increase in premium after a claim in the best home insurance.
Cons
- Rate Increase: Some claims-free customers experience premium increases after renewing homeowners insurance coverage.
- Add-Ons Limitation: Although Allstate offers many add-ons, their availability depends on your location, which will limit the option to customize the coverage for homeowners.
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Cheap Homeowners Insurance Monthly Rates
Unlike car insurance, homeowners insurance is not legally required to own or rent a home. However, finding coverage should still be a priority because it protects your home from the most common damaging events.
Unfortunately, home insurance rates can be expensive, but you deserve the protection homeowners insurance brings, no matter how tight your budget is. Check this table to discover what home insurance covers.
Homeowners Insurance Monthly Rates by Provider & Coverage Level
| Insurance Company | $200k | $300k | $500k | $1M |
|---|---|---|---|---|
| $175 | $217 | $283 | $460 |
| $162 | $202 | $262 | $432 |
| $150 | $195 | $250 | $410 |
| $165 | $210 | $270 | $445 |
| $140 | $185 | $235 | $390 |
| $155 | $205 | $265 | $425 |
| $170 | $215 | $275 | $450 |
| $145 | $190 | $245 | $400 |
| $160 | $200 | $260 | $430 |
| $152 | $198 | $258 | $420 |
Lemonade is the cheapest homeowners insurance company, offering rates of $140, $185, $235, and $390 for $200k, $300k, $500, and $1M, respectively.
Considering your budget, you can browse the discount options in the table below to lower your monthly cost if this is still expensive.
Homeowners Insurance Coverage Discounts From the Top Providers
| Insurance Company | Bundling | Claims-Free | Green Home | New Home | Safety Device |
|---|---|---|---|---|---|
| 15% | 20% | 5% | 5% | 10% |
| 10% | 22% | 5% | 6% | 29% |
| 12% | 18% | 5% | 6% | 10% |
| 12% | 25% | 5% | 8% | 10% |
| 10% | 15% | 5% | 7% | 8% |
| 14% | 20% | 5% | 5% | 10% |
| 11% | 18% | 7% | 7% | 10% |
| 16% | 21% | 6% | 9% | 10% |
| 20% | 24% | 5% | 6% | 17% |
| 13% | 16% | 4% | 4% | 10% |
One common option is bundling home insurance coverage with other policies like auto, life, and health insurance, as all companies offer 10% to 25% discounts.
Factors like location and coverage limits influence home insurance rates, so regularly reviewing your policy can help ensure you're not overpaying.Dani Best Licensed Insurance Producer
Remember to stay informed about your policies as they change over time. This will help you protect your home while not overstretching your pocket. Below are the types of policies and their rates for you to check.
Homeowners Insurance Policy Types and Monthly Rates
| Type | Policy | Definition | Rates |
|---|---|---|---|
| HO-1 | Basic Form | Named peril coverage for single-family dwelling | $50 |
| HO-2 | Broad Form | Extended named peril coverage for single-family dwelling | $75 |
| HO-3 | Special Form | Standard homeowners insurance; open peril coverage for single-family dwelling | $120 |
| HO-4 | Renters Insurance | Personal property coverage for renters | $40 |
| HO-5 | Comprehensive Form | Extended open peril coverage for single-family dwelling | $150 |
| HO-6 | Condominium Form | Open peril coverage for condo owners | $60 |
| HO-7 | Mobile Home Form | Open peril coverage for mobile home owners | $100 |
| HO-8 | Older Home Form | Open peril coverage for older single-family dwellings | $85 |
Whatever policy you belong to, it is important to double-check that this coverage meets your home’s current and future needs. Additionally, rates of home insurance vary based on location. Here are the rates by state you can check out.
Some states have higher home insurance rates than others, and there are driving factors behind these, not just random reasons. Know these factors that affect home insurance below.
Read more: HO-6 vs. Renters Insurance: What You Need to Know
Key Factors Affecting Home Insurance Monthly Rates
The average cost of home insurance differs across all policyholders as several factors are also considered when determining their cost. Below are the factors for you to note and evaluate if your current rates are reasonable.
Factors Affecting the Home Insurance Monthly Rates
| Factor | Description | Impact |
|---|---|---|
| Location | Proximity to risks like floods, crime | Higher in high-risk areas |
| Home Age | Older homes may have outdated systems | Older homes = higher rates |
| Home Value | More valuable homes require more coverage | Higher home value = higher premiums |
| Coverage Limits | Amount of coverage chosen for home & belongings | Higher coverage = higher premiums |
| Deductible Amount | Higher deductible lowers monthly premium | Higher deductible = lower premium |
| Credit Score | Affects risk assessment by insurers | Poor credit = higher premiums |
| Claims History | Frequent claims increase perceived risk | Frequent claims = higher premiums |
| Home Security Features | Systems like alarms reduce risk | Security features lower rates |
| Roof Condition | Roofs in poor condition may cause damage | Poor roof = higher premiums |
| Natural Disaster Risk | Risk of earthquakes, floods, wildfires | Higher risk areas = higher premiums |
| Insurance History | Continuous coverage may lower premiums | Continuous coverage = lower rates |
| Type of Construction | Fire-resistant materials lower risks | Fire-resistant homes = lower rates |
| Home's Square Footage | Larger homes have higher replacement costs | Larger homes = higher premiums |
| Policy Type | Basic vs comprehensive coverage | Comprehensive = higher premiums |
Homeowners can reduce their premiums by making educated decisions based on their understanding of the variables influencing recommended house insurance coverage costs. Policyholders can better control insurance expenses by picking the right coverage, keeping a high credit score, and enhancing home security.
Common Types of Homeowners Insurance Coverage
Common Types of Homeowners Insurance Coverage
| Coverage | Description | Details |
|---|---|---|
| Dwelling | Covers the structure of the home against perils like fire, wind, or vandalism | Repairs or replacement of the home structure |
| Personal Property | Covers belongings inside the home, like furniture or electronics | Replaces personal items after damage or loss |
| Liability | Protects against injury or property damage caused to others | Covers legal fees and medical costs for others |
| Loss of Use | Pays for living expenses if the home becomes uninhabitable due to a covered event | Covers hotel stays or additional living costs |
| Medical Payments | Pays for medical bills if someone is injured on your property | Covers small medical expenses for guests |
| Additional Structures | Covers detached structures like garages, sheds, or fences | Pays for repairs or rebuilding of additional structures |
Homeowners insurance provides essential protection for your home’s structure and financial security. Knowing the various coverages for homeowners insurance helps ensure you’re prepared for unexpected events, from property damage to liability claims.
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Remember to be wise when shopping around for the best home insurance coverage by equipping yourself with enough knowledge about policies, discounts, and perks.
Read more: Homeowners of America Insurance Company: Customer Ratings & Reviews
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How to Save Money on Homeowners Insurance Coverage
Knowing the cheapest household insurance companies is only half the battle. Here are the other things you need to consider in buying home insurance while taking advantage of discounts.
Once you know which top homeowner insurance companies might work for you, consider the following ways to save money in a more detailed manner.
- Take advantage of discounts. You’ll need to check with the company, but insurance providers usually offer discounts for safety and security features, new homes, roof replacements, bundling, and remaining claims-free.
- Pick your specialty coverage carefully. Many additional coverage options exist, such as floods, earthquakes, and identity theft. However, these can make your bill much higher. They’re worth the cost if needed, but you should only buy what’s recommended for your area.
- Raise your deductible. If you have a higher deductible, your monthly insurance will be lower. There is a risk that comes with increasing your deductible, though. You’ll have to pay more before your insurance kicks in if you need to make a claim.
- Increase your home’s security. Adding smoke alarms, security screens, and active burglar monitors can save you money on your insurance. They also keep you and your family safe.
If you’re trying to find the cheapest way to buy home insurance, shopping around for homeowners insurance quotes is best. When you start comparing companies, you’ll see a lot of price variation.
Get Quotes from the Top Home Insurers Near You
You might wonder, “Is there cheap homeowners insurance near me?” The answer is yes, and it’s easier to find than you might think. Make sure to ask about discounts, buy only the coverage you need, and keep your home updated.
You’ll quickly find affordable yet the best home insurance.
The most crucial step to finding cheap homeowners insurance is to compare rates with as many companies as possible.Jimmy McMillan Licensed Insurance Agent
Shopping online for home insurance companies is the best way to find cheap homeowners insurance coverage providers near you. Simply enter your ZIP code to start quotes from the best home insurance providers.
Frequently Asked Questions
What does home insurance cover?
What does homeowners insurance cover? Generally speaking, home insurance includes liability protection if someone is hurt on your property and damage to your house and personal items from fire, theft, vandalism, storms, and unavoidable water damage.
Additionally, it might pay additional living expenses (ALE) if a covered loss renders your house uninhabitable.
What is the main coverage in any homeowner policy?
Homeowner insurance typically covers the following:
- Dwelling coverage: Protection for the structure of your home, including the walls, roof, foundation, and other attached structures like garages or decks.
- Personal property coverage: Coverage for your belongings, such as furniture, clothing, electronics, and appliances, in the event of theft, damage, or loss.
- Liability coverage: Financial protection if someone is injured on your property or if you accidentally cause damage to someone else’s property.
- Additional living expenses coverage: This policy reimburses temporary living expenses if your home becomes uninhabitable due to a covered event, such as a fire or natural disaster.
What is homeowners insurance?
Homeowners insurance is a type of property insurance that provides financial protection to homeowners in the event of damage or loss to their homes and belongings.
It typically includes coverage for the home’s physical structure, personal property, liability protection, and additional living expenses if you need to relocate temporarily due to a covered event like Flood Zone X.
Are there any types of events that are typically not covered by homeowners insurance?
Homeowners’ insurance typically does not cover floods, earthquakes, or routine wear and tear. Separate insurance policies or endorsements are available for these specific risks. If you live in an area prone to such events, it is important to review your policy and consider additional coverage options to protect against these exclusions.
You can get early quotes for your home insurance here by entering your ZIP code.
Which homeowners policy provides the most coverage?
An HO-5 home insurance policy covers your property under all circumstances except those explicitly excluded in your policy, such as floods and earthquakes.
What is the 80% rule in homeowners insurance?
A home insurance company will only provide coverage if you buy a policy that covers at least 80% of the value of your home. Factors including the size of your home, construction materials, and local building costs are considered.
This rule can help you determine how much homeowners insurance you need or if you need to buy additional coverage like title insurance coverage.
Can I adjust my homeowners’ insurance coverage over time?
Yes, you can adjust your homeowners and property insurance coverage over time. Reviewing your policy and making necessary updates is important as your needs change. For example, if you renovate your home, acquire valuable items, or make changes that affect the replacement cost, you should inform your insurance provider and adjust your coverage accordingly.
What impacts my homeowners’ insurance rates?
There are numerous factors an insurance company will consider that determine the price of your insurance. You can read about the most important ones below:
- Location: Perhaps the most crucial aspects of your insurance rates are your location and how likely you are to file a claim. Areas frequently hit by natural disasters or high crime rates will pay more. Check here on how to file a homeowners insurance claim for wildfires.
- Age and condition: Older homes generally cost more to repair because of their building materials. Additionally, older homes might have outdated electrical or plumbing systems.
- Value of home and repair costs: The more expensive your home is, the more it will cost to repair it, especially if it has custom features like fireplaces.
- Coverage options: Your costs will rise with every extra feature you add to your policy. You’ll pay more if you choose lower deductibles, as well.
- Security features: Insurance companies generally lower the price of insurance for things that reduce your chances of filing a claim. Safety or security features like fire or burglar alarms usually save you money.
- Credit score: Your credit score represents your ability to pay your bills. You can lower your insurance cost by raising your credit score.
Are there any discounts available for homeowners insurance?
Yes, many insurance providers offer discounts on homeowners insurance. Here are the common discounts for buying home insurance:
- Multi-policy discount: You may be eligible if you have multiple insurance policies with the same provider, such as auto and homeowners insurance.
- Security system discount: Installing a burglar alarm, fire alarm, or other security systems can result in premium discounts.
- Claims-free discount: Some insurers offer discounts for homeowners who have been claims-free for a certain period.
- Non-smoker discount: If no one in your household smokes, you may be eligible for a non-smoker discount.
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